Buy Phoenix Mills, target price Rs 875: Antique Stock Broking

Antique Stock Broking has maintained buy rating on The Phoenix Mills with a target price of Rs 875. Shares of Phoenix Mills ended up 0.3 per cent at Rs 577.15 on Friday while BSE Sensex closed 131.18 points down (-0.44 per cent) at 29,815.59.

Phoenix Mills Ltd., incorporated in 1905, has a market cap of Rs 8857.08 crore, operating in Real Estate sector.

Investment Rationale


More than 90 per cent of annuity income is from retail malls and hospitality portfolio and both portfolios would see a significant dip in income during the period of lockdown. The hangover is expected post lockdown too, said Antique. The brokerage expects retail malls of Phoenix Mills to bounce back to optimum operational efficiency once Covid-19 is fully contained.

Financials

Phoenix Mills' key products/revenue segments include Licence Fees which contributed Rs 302.23 crore to sales value (76.08 per cent of total sales); Others which contributed Rs 50.90 crore to sales value (12.81 per cent of total sales) and Service Charges which contributed Rs 44.07 crore to sales value (11.09 per cent of total sales)for the year ending March 31, 2018.

For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 511.79 crore, up 23.30 per cent from last quarter sales of Rs 415.07 crore and up 16.20 per cent from last year same quarter sales of Rs 440.43 crore. The company reported net profit after tax of Rs 96.49 crore in the latest quarter.